Rentokil Initial (RTO) H2 2025 earnings summary

Executive summary

• Group revenue increased by 3.8% to $6.9 billion, with organic revenue growth of 2.6% year-over-year.

• Adjusted operating profit rose 5.4% to just over $1 billion, with a margin of 15.5%, up 0.3 percentage points.

• North America and International regions delivered improved performance, with strong execution of strategic initiatives and high retention rates.

• Strategic focus on expanding local branches, multi-brand strategy, and leveraging AI and digital enablement for operational efficiency.

• Continued operational execution, simplification, and digital transformation across the group.

Financial highlights

• Revenue up 3.8% to $6.9 billion; organic growth 2.6%.

• Adjusted operating profit up 5.4% to $1,070 million; margin at 15.5%.

• Adjusted basic EPS increased 2.4% to $0.2591; free cash flow grew 24.5% to $615 million; conversion rate 98%.

• Net debt reduced to $3.65 billion; leverage ratio improved to 2.6x.

• Dividend per share increased 3% to $0.1239.

Outlook and guidance

• Targeting North America net operating margin above 20% by 2027; $100 million cost reduction target on track.

• Free cash flow conversion expected to remain above 80%.

• FY26 gross capex guidance of $190–$200 million; one-off items of $100 million related to transformation.

• 2026 cash guidance for termite provision: $85–$95 million.

• Confidence in delivering in line with market expectations for 2026, despite some weather-related disruption in January.